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The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

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01:00:00

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San Francisco, CA, USA

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Virtual Ch. 58 (CNBC)

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mpeg2video

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ac3

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480

TOPIC FREQUENCY

Us 7, Sandy 5, Virginia 5, Newark 5, Geico 4, West Virginia 4, Boston 3, New York 3, New Jersey 3, Michele 2, Fugate 2, Chantix 2, Penn 2, Fema 2, Chris Christy 2, Atlantic City 2, New York City 2, America 2, Pennsylvania 2, Maryland 2,
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  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    October 30, 2012
    7:00 - 8:00pm EDT  

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you are all over every angle of this storm. >> we are looking at the aftermath tonight that has left a trail of wreckage throughout the area. >> how and when does america get back to business. tonight, the tough road to recovery. >> good evening. super storm sandy leaving a trail of destruction in it's wake. >> the death toll in the us has climbed to at least 4018 in new york city alone.
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8 million customers and counting in the mid atlantic region without power tonight. two feet of snow in parts of maryland and west virginia. the stock markets will be open for business tomorrow after being closed for the past two days. president obama will be looking at the devastation with dpgoverr chris christy in new jersey. let's get to todd gross tonight who is tracking the storm over the new york east. >> reporter: you may not believe this. sandy won't quit. if you look right here, there is a new belt of showers and thunderstorms that have formed. gusty storms that are affecting that wart of the country. even the north eastern united states on the coast line is in
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part of the storm. right in through chicago coming in through the great lakes that is where the winds are funneling in from the north. same winds edge of the storm that moved in on the coast line. that is number two. and three of course, we have a lot of air play in through here. let's zero in on west virginia. it is not only snowing there, they have had over two feet around 30 inches of snow. if you look at the video, from west virginia and from the western pan hand handle of mary they have had not only 30 inches of snow, but another foot that is going to come in the next 24 hours. even though the really big punch from sandy is over, there are still more problems to come. when we get to tomorrow night we
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will finally be able to breathe a sigh of relief. >> todd unbelievable. our team has this story covered for you. let's start with scott in lower manhattan. will wall street be able to get back to business tomorrow? >> the markets will open as scheduled tomorrow but that is about all that will be normal. behind me is the white hall street station for the new york city subway and take a look at video that was shot today of what lies below. it is flooded and flooded badly. you can see by looking at the video with turnstyles under water and platforms under water.
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it is going to take some time before they get these stations open. seven tunnels under the east river flooded. two commuter tunnels the blo brooklyn and holland tunnels flooded. they will get open tomorrow but that alone will be a major accomplishme accomplishment. back to you. >> well, michele, president obama is set to visit new jersey tomorrow. the visit comes a day after the president announced major disaster area for eight counties in new jersey. president obama keeping in close touch with new jersey governor chris christy himself touring the damage across the state. in that tour, you can see homes
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submerged in sand left over after flood waters receded. boats up on bridges and a famous roller coaster in seaside heights now out to sea. three million in the state still without power and atlantic city still under mandatory evacuation. flooding is still evident here and businesses have yet to get back off the ground. we are told by many that they are hopeful to be back in business by thursday. a process that could take months and could stack up to be tho billions of dollars. >> meanwhile mary thompson is in
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pottsville, pennsylvania. >> this distribution center serves 116 stores in six states. it is being loaded with emergency supplies headed for eastern maryland which was hit by the storm surge as well as the rain. other goods that are needed for the post-recovery process. they will be the last things loaded on the truck so they are the first thing off the truck when it hits that affected area. preparation for sandy started early. while shipping out the goods to shep with that recovery process will last for days. >> we worked additional hours prior to the storm. people would come in and work some over time to help prepare prior to the storm and we will also be doing it post storm now. we do workday and night
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throughout the week and the weekend as well. >> helping homeowners with the post storm recovery process. burn told us what stood out for him about sandy is the amount of ground that it covered. this served west virginia where there was snow fall and new jersey where the devastation was so great. as a result, this distribution center has employees that were dealing with electricity outages and they are having to work the schedules around their employee's problems as well. back to you. >> thank you so much. now for the next big hurdle. how are we going to pay for the wide-spread devastation. joining me now is new york congressman peter king. thank you so much for joining us congressman. >> very well come, thank you.
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>> you just finished i understand a helicopter tour of your area. tell us, what did you see? >> well, it is devastating. i was up in the helicopter and also on the ground during the day. certainly the south shore of long island, communities line ma massapequa and lindenhurst we had homes burned to the ground because the firefighters couldn't get to them and the city of long beach has no sewer system or heat or water or anything. it is mass evacuation going on. it's is a city of 40,000 people. we are talking about a considerable area. again, it is devastating and it is going to cost many, many dollars. everyone is working full time.
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police, fire, executives in both counties. everyone is working together at the command centers where we have all of federal state, county and town officials working together. it is a coordinated effort. >> and the question is being asked today, sir, how do we pay for the infrastructure that has been damaged so badly by the flooding and by the wind. it goes beyond a fema grant and it comes at a time when we are dealing with a clip and a fragile economy. >> one way or the other it has to be paid for. it requires a supplemental appropriation. first of all, there is enough money director fugate says for the fema part of the recovery, i think we voted $6.1 billion in
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the budget. there is enough in the fund right now. director fugate says. as far as the improvements that will have to be the supplemental appropriation and we'll have to have that be accounted for. but one way or the other, we'll have to have that be done. it is enormous not to improvement. it could have long-term economic consequences. we'll have to see what it is going to be. we'll have a commitment to make sure it is going to be done. >> thank you so much for joining us. >> millions are without power tonight. coming up. we'll ask the guy who runs the east coast utility companies when and how he plans to get that back on the grid. >> sandy, the path of destruction. there are a lot of warning lights
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welcome back to the cnbc special report. >> if you are flying into the
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airport. newark, laguardia and jfk remain closed. there have been more than 18,000 flight cancellations related to sandy. little confidence that we will see that happen early tomorrow. there is a possibility that will happen late thursday night. when will they be able to resume service. >> thank you, bill. significant parts of the northeast, president and ceo of pse & g the power company here in new jersey. how long do you think you will see everyone with their power
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restored? >> oh, mr. larosa can you you hear me? you are live on the air right now. because we hear you. >> just one mr. minute. >> all right let's try a different path here. amtrack making retearpairs alone heavily damaged northeast corridor. we are joined on amtrack's media relations. >> good evening from wilmington, delaware. >> how long before we get things back to normal? >> normal is a ways off. but we will be operating northeast regional service from newark south tomorrow. and we are bringing service back from points south but we are unable to operate into new
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york's penn station and unable to operate to the northeast up to boston from penn station. >> is that due to the flood sng. >> that is correct. the tunnels took some water. until those tunnels or a number of those tunnels come into service, we are unable to operate. >> how many people will this affect then? how many commuters will not have a train available to them? >> i can't speak to commuters but amtrack supports 750,000 passengers every day. septa service into philadelphia, and the mark service out of baltimore and the service out of washington all of that will
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operate along with the line out to harrisburg. so we are seeing service restoration but it is south of . >> the shuttles can't come into dc or boston. and it is nearly impossible in boston or dc to get to the financial capitol of the world you are aware of that right? and the pressure that you are under to restore service? >> oh, yes. this is the only the first face phase of it. we are not going to into newark airport station. once you get to penn station. the p.a.t.h. service that normally operates under the hudson, it is down, it won't be up by tomorrow. the same thing with the other
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connections that you would get. you are would have to make your own way. >> where do you rate this? >> i was here for irene. certainly, as everyone else has said, it is a more intense and unprecedented storm to what it has done to operations, we are also bringing some of them back. >> thank you for joining us tonight. >> we have re-established on the phone, m.laroso on the phone. thank you for joining us. how long, we are asking the questions everyone else wants answers to i'm sure. >> glad to give you information. we've been able to make good progress today. we are down from our peak from under 1.4 million customers. so, more than 25% of the
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location that is were damaged those customers that weere interrupted were restored. we were able to restore service to newark airport. we restored service to the city of newark and elizabeth. >> the remains million people how long will they have to wait? >> i don't want to give you an exact number. we think there will be stragglers. those are the customers that have individual services down. but we plan to get most of the customers back within that seven day window. >> president obama held a conference call with you and other heads of utilities a short time ago. is he offering aid or other electric workers comie ing to h? >> we have a conference call on a regular basis and trying to
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help free up resurfaceources. we have folks coming all across the united states and we are working together to get our customers back in our area. you can see what is happening in west virginia and virginia. we need as many resources as possible. president obama offered to clear any obstacles that we may have had. we have had the same cooperation and we have had the same offer from officials in new jersey. >> we have had the governor of new york talking about the utilities today during his news conference saying that he is going to be on them to make sure that power is restored. your industry will become a political football. what do you say to politicians
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in the coming days who will be critical of your industry. >> i can't speak to what is going on in new york. spees s these systems before built 90 years ago. we weren't expecting to have winds coming onto the shore lines of new jersey and we are working together and i think we will come out of this even stronger. >> thank you for your time tonight sir. >> coming up larry kudlow joins us to tell you how and why we will bounce back all together. >> plus more on how the east coast is going to get back to business tomorrow. those surprising little things she does
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human element and the triumph as people start the rebuilding process. >> thank you, that is the key point. the human tragedy here, that is the worst part of this story. in terms of rebuilding and restoring do not under estimate the american spirit and individual initiative. it is going to take a few months, i know this one is tougher, stores close they reopen. windows broken they are repaired. homes can be repaired. don't under estimate. how fast this might recover. >> you are speaking about the power of the individual as opposed to the power of the state or government. >> well look, i think in it's proper spot, the government is going to take care of the government.
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they are going to do a pretty good job and let me just say president obama has been all over this, so my hat is off to him. >> hurricanes don't create new economies. i'm saying destructive things like this can be repaired so we get back to where we were in the first place. the numbers, heck, $50 billion, $60 billion, some of that will be recouped in the 4th quarter and some in the 1st quarter. >> we were talking with peter king about that. >> well look, two things, you are talking about 0.30 of 1% of gdp. the fiscal clip and the tax and regulatory threats and barriers that is a different issue. i'm not saying that the repair of sandy is going to give us a
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5% gdp which is what i want. it will get us back to par. and it will probably happen very fast. you want to break through that, sure, we have to solve all kinds of tax issues. all i want to say is, don't under estimate the american spirit. you heard chuck schumer say they are going to rebuild. i love that. >> we love your optimism larry. >> we are going to be okay this is america. >> larry dkudlow. >> we know you all miss him. coming up next we will tell you how they plan to do it and we will be back with more on this cnbc special report. when you take a closer look...
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>> a collapsed train continues to dangle 74 stories over new york city more than 8.5 million homes knocked out of power and a megastorm is being blamed for deaths in eight states. >> but ready or not the market will open at 9:30 am eastern time tomorrow morning. how is that going to happen with intense flooding in the financial district? >> it is business as usual. keep your fingers crossed. the nyse along with the other exchanges will open as usual for
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a full trading day. >> way have had people on site throughout the evening and we got the reporterly this morning that there was no issue with the building. it had not been comprom iced. we believe we will be open for business tomorrow. >> even though downtown new york was without power, the back up generators were up and functioning. he told me that the most important issue that the nyse could connect with the trading community. >> i think what we were most worried about, since a lot of them were working from their own si sites we want to make sure that their systems are working as planned. that is not something that is tested frequently. >> there has been pressure to
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open tomorrow since it is the last day of the trading month and many funds report gains and losses and tomorrow is the final day of the year. while the final trading day of the month, some will be operating with light staff tomorrow and some may be operating from alternate fac facili facilities. i think we need to look at these trading plans more carefully and make sure there is more oversight from them. i think they mentioned that to me on the air today. >> we have the potential when you have these different sites operating. >> the main concern that i have, is making sure this issue is okay. they are operating with systems we don't know if there has been damage. we are told they are fine.
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some firms are operating on light staff. they may be operating on alternative facilities. it is going to be an important moment. >> just a reminder. where the market stood on friday, the bell rang 9:30 on friday, our jim cramer is already seeing some signs. good evening jim. >> the stock futures are looking up. europe is good. we have very good numbers from bp and we have good insurance numbers. in our country ford 40 cents i was only looking for 30 cents. the bed spring maker, look for that stock decline. kroger spoke with the cfo this
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morning when i was talking with squawk on the street and it looks like they had a good month of october. take a hard look at the union pacific csx cold plays because i think that is a safer way to play coal. we talked earlier in the show about the coal chart and how they looked better than expected back to you. >> well, you thought sandy was done with. it has turned into a blizzard in west virginia. we have dispatched janell klein in snowshoe, west virginia. >> reporter: hurricane sandy has dumped two feet of wet heavy snow. 26 inches in red house, maryland with a state weigwide blizzard
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warning. closing schools in 39 counties and leaving more than 300 people in the dark tonight. the blizzard has closed 45 miles of a major interstate between the border of west virginia and pennsylvania. with reports of three roof collapses, the worry now that heavy wet snow could cause more. fog and wind are making it slow and difficult for power crews to repair downed lines. repair workers are eager to see people hit the slopes. >> we break down the ugly truth about insurance. we'll be right back with more. [ male announcer ] the 2013 smart comes with 8 airbags,
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picture of new jersey governor chris christy. he says quote, tomorrow the recovery begins. >> after events like superstorm sandra, investors are often defrauded, we have more on how to protect yourself from the storm. the better business bureau is reminding them to take certain precautions. you should be wary of one of the most common scams of the disaster. mediaimmediately after a disaste wary of advivisors who promise g gains.
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some of the pichs were from disaster clean up companies and some stated that the stocks were supposed to rise due to prefinery glitches and some of the other scams involve clean up to your home, and yard. never pay in full or advance. pay only third up front and before making the final payment ask for proof that all sub contractors have been paid if not, you could be liable. >> what do consumers need to know when it comes to flood damage. >> the first thing you have to know is that you are dealing with the insurance company first. you need to find out what is in
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your policy as you mentioned. flooding damage isn't covered unless you purchase a separate policy. so if you have a $300,000 home you could be paying out of pocket $15,000 before a came kicks in. all of the casinos in atlantic city have been closed. we are joined by the ceo of top c tropi tropicana? >> how bad is the destruction tonight? >> i think the destruction in jersey is overwhelming.
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i think we came through this about as well as any shore community could that. when i look at the video of cape may, wildwood and ocean city -- >> we are having -- >> it wasn't nearly as bad. >> when do you plan to reopen? well, the state's -- [ inaudible ] >> that is unfortunate. we are having trouble with his cell phone. which has been a continuous problem. >> many of the cell ptowers in the area have been hurt by the flooding and the back up generators are under water right now. the storm is far from over as well. we could see more damage to come and snow that could affect
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these are early days the nation is starting to process the tallying the cost of the devsating storm. >> some of the estimates that are out there, they range in cost of as high as $30 billion. it is not clear that they became apparent today or any of the models are adequate to the weather event. this shocking video of the coast line was aired late this
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afternoon. the aspects of this storm, brought devastating rain and winds a7 to $15 billion in property loss and these do not include property loss. $20 billion in lost economic activity and 30 to $50 billion including property dig and lot economic activity. look at the most devastating loss. that would be in the range of the drought and heat wave of july of 1980. right in that range there. each one of these disasters are
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offset by spending and reconstruction. it offset the losses and economic activity. depending on the economic activity it will be noticed. >> that lead to my next question which say, it turns out to be a net profit on the economy. first of all, you know, you talk about stock, you have a house and it has the value. the activity of rebuilding the house. if we end up building better. some of the things to look for, this thing is still spinning out there. it is beyond me, but let's see how quickly things get up and running again. tomorrow, that is the measure of output that is in the economy.
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the devastation of infrastructure in a city like new york city that has never seen this kind of devastation and the cost of that as well. not only of rebuilding but the lost cost of tourism and other things. opportunity costs not being able to get into the city because of amtrack and the airport being closed down. and all of those things what else would you have spent that $1 billion on? right now, you can think maybe we need to start thinking of the intrastructure of wall street in that area. an t what do you watch at this point? >> how quickly you get the power back on. i know you got the weather
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center on. >> well, you talk about idle people, that takes away from the nation's gdp. >> all right we are getting word that the death toll has climbed to 44. long island almost one million without power. many in the entertainment and political world have property there. >> long island one of the hardest hit areas. this building behind me used to be a bar and restaurant. it is completely destroyed and i talked to the owners and they lost their home. we took a tour of the area.
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it is unbelievable the best way to describe it is a movie set. both on boat. it was an unbelievable sight to see. ivisted with a family that has been there for 44 years. they said enough is enough. 900,000 customers remain without power. it is about lost business. they rely heavily on fishing and tourism. you have vehicles and look at the wreckage. we saw gas lines 30, 40, 50 people grdriving all over the place. >> thank you. so what is ahead for the next 24 hours and beyond. let's get to mary landrieutodd .
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>> first of all, it moved backyards to east to west and that is number one. and it stalled and look at the tremendous size. extending from nova joorscotia the eastern part of wisconsin over 1,000 miles of egg estate being affected by this storm. you see areas of snow one over michigan and one over west virginia. as we run down the next 24 hours and beyond. you will see it is more than just snow. new england is seeing gusty rains and the storm is not weakening at this hour. not right now. so we are seeing gusty rains and thunderstorms in new england. the great lakes starting to pick up now.
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the western plank of the storm that moved in along the coast line yesterday. it is a weak er storm. the ohio valley, we have a rain and snow storm going on. 48 hours more snow to come. that puts it up to 48 inches of snow. i know it sounds crazy. but remember are, the long range chart pegged this storm a week in advance. i'm not saying this is going to happen, but there is a chance of snow in parts of the north east coming up on election day. we are watching in terms of sandy and another possible storm in the week to come. there are aspects of sandy that didn't work out. it picked up speed once it
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headed west there and it moved along. the devastation is exceeding what people thought because expecstations were for great devastation. >> actually, a fast-moving storm brings the forward motion of the winds and the water with it. that tends to increase the devastation to the right-hand side of the motion. and it is on the right-hand side of motion. we got hit hard in the local metro area. it has been tough. >> todd gross thank you very much. >> it is going to have an impact. >> it will. if you are not a motivated voter. then you don't turn out. >> markets tomorrow open. it might be very, very interesting. stay tuned for our coverage of it tomorrow. and it will be very interesting. they say the reset that has to
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happen. coordination of trading floors. bob did a great job of highlighting the unknowns. it is going to be a moment tomorrow morning. here is where the dow closed on friday. i was just going to say it felt so long ago. it was higher by 297 and the s&p 500 closed. will people be raising cash for rebuilding. that is all to be answered tomorrow. >> that is going to do it for this special report. i'm michele. >> be sure to tune in tomorrow for continued coverage. you can also monster the latest. good night. [ lisa ] my name's lisa, and chantix helped me quit.
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